All Forum Posts by: Mohammed Rahman

You’re on the right path! A few things to consider:

1. Selling and 1031 Exchange: Moving to a 2-family is a great idea. It’ll give you better cash flow and more rental income to offset your mortgage.
2. Condos: Condos are fine, but they often come with higher fees and slower appreciation. You might get better returns from multi-family properties, which offer more rental income.
3. LLC: Setting up an LLC has pros and cons. It protects your assets, but it can make financing harder. Talk to a CPA for advice based on your goals.
4. Reinvestment: Instead of paying off properties quickly, reinvest your cash flow into more properties to grow your portfolio faster.
5. Rent Increase: Look for opportunities to increase rents or add value to your current property to boost cash flow.

Consider focusing on multi-family properties for better passive income. Let me know if you need help finding your next deal!

In what aspect though? Are you an agent paying a bird-dog fee to a lender for sending you clients or vice versa? That could be a violation of TRID. 

Or are you just giving fees to wholesalers/folks to send you deals? That's fine. 

Your post is too ambiguous 

To estimate closing costs and monthly expenses for a multifamily property, closing costs in New York typically range from 3-6% of the purchase price. Include taxes, lender fees, and attorney fees. Monthly expenses will include mortgage payments, property taxes, insurance, utilities (if applicable), maintenance, and reserves for repairs.

You'll need at least 3.5% for an FHA loan or 20% for a conventional loan, plus cash reserves. Make sure the property's rental income will cover these costs. Work with a lender and real estate agent familiar with Westchester to get precise numbers. Without proper planning, house hacking can become a financial strain.

DM me for further questions or assistance if needed.

Given that your property has been subdivided into two rental units, it should indeed be compared to other multifamily properties in the area, not single-family homes. The current use of the property as a two-family dwelling significantly impacts its value and marketability, which is distinct from single-family homes.

The initial appraisal comparing your property to single-family homes is likely an oversight, as multifamily properties are evaluated differently due to factors like rental income potential and investor interest. I recommend requesting a review or a new appraisal that compares your property to similar multifamily properties in the area to ensure a more accurate valuation. This will provide a better reflection of the property’s true market value based on its current use.

DM me if you need more insight

It sounds like you're off to a strong start with your real estate journey. Given your residency limits, the high prices in NYC and surrounding areas are a challenge, but there are still options in neighborhoods further out within your allowed range, like parts of Queens, Brooklyn, and the Bronx. These areas may offer more affordable multifamily properties that fit your house hacking goals.

Rochester and other distant markets could work for a BRRRR strategy, but it's a big commitment given the distance. I'd recommend focusing on affordable areas closer to the city for house hacking to keep things manageable. Let me know if you'd like help narrowing down specific neighborhood.

DM me or text me if you wanna chat!

Hey @Kieran Collings - please send out your survey my way !

I would add that you should definitely checkout some local real estate meetups as that's the best way to quickly build a buyer's list. 

Already helps a lot if you're bringing a deal to the table... I've found once you have the right deal the buyers come to you :) 

Will be a better question for your CPA in my opinion, they'll have better visibility into what strategy will work best before filing season and EOY. 

Hey @Sol Baum - real estate broker here. 

If it's not in writing then technically its up for grabs, you can fight the broker's split request. House split is probably already spelt out in your commission/agent agreement so there's less confusion around that. 

If I'm in your shoes, I would probably ask myself what the procuring clause of the client/agreement was? Is this a client that came to you via your own network, or was this someone the broker put you in touch with a while ago? 

In a lot of cases, you will probably have to bite the bullet here unless you decide to be ok with the broker taking it in the wrong way. It's one of the reasons I left and started my own brokerage, but that may not be what you want to do either. 

Happy to chat further on a call if needed, shoot me a DM or text whatever works. 

Hi @Sean Leahy - good direction, I've never considered this but now that I think about, whenever I've had some random rental/sale listings I've been approached by brokers who said they represent folks that are part of the insurance company's claim management process (e.g. their house burnt down due to an accident). 

It could be worth reaching out to some local brokers to ask them, as they may be able to better guide you. 

Hey @Thomas Sheehan - you can't outsource investment decisions to other folks, you have to first figure out what a "good" investment is for you. 

For example, in this case it could be that this is a great investment for you because the rental return you'd make from putting in this much cash into a purchase works (for you!)

For others, it may not work as much.